Following its acquisition of Elizabeth Arden, which closed in September, Revlon, Inc. unveiled a new organization structure in mid –January which it says will “enable the company to meet its long-term growth aspirations and more effectively compete in the dynamic and rapidly growing, global beauty industry.”
According to a filing with the U.S. Securities and Exchange Commission filed on January 3, Revlon expects to cut 350 positions worldwide and expects integration-related restructuring charges of between $65 million and $75 million by 2020.
Of these charges, an estimated $40 million to $50 million will be generated from employee-related expenses — including severance, retention and other contractual termination benefits, $15 million in lease termination costs and $10 million in other charges. Revlon projects that it will record an estimated pre-tax restructuring charge of about $30 million for 2016, with between $30 million and $40 million in restructuring charges for 2017. The remainder will be paid by 2020, says the SEC filing.
Revlon also said that it has identified incremental annualized synergies and cost reductions that are expected to significantly exceed the previously-disclosed $140 million in annualized synergies and cost reductions.
With the successful acquisition of Elizabeth Arden, the $3 billion combined beauty company has a diverse portfolio of iconic brands with product offerings in color cosmetics, skincare, fragrance, hair color and hair care, beauty tools, men’s grooming products, anti-perspirant deodorants and other beauty care products, sold in approximately 150 countries through a variety of distribution channels.
Business to be built around four global brands
The new organization will be brand-centric, built around four global brand teams, Revlon, Elizabeth Arden, Fragrances and Portfolio Brands.
Geographically, Revlon says that a new customer-facing regional structure will optimize global sales and brand presence behind five regions in North America; Europe, Middle East & Africa; Asia; Latin America, which includes Mexico; and Pacific, which includes Aus-tralia and New Zealand.
In order to better support the new brand-centric and regional structures, the enabling functions, including Finance, Human Resources, Supply Chain, Research & Development, Legal, and Communications & Corporate Social Responsibility, will also reorganize their departments.
“This new brand-centric structure enables us to leverage the strength of our iconic brands, better focus on and serve beauty consumers, and quickly adapt to their changing behaviors and preferences,” said Fabian Garcia, President & CEO of Revlon.
“Aligned with our strategy, the new brand-centric structure better positions us to grow and win across categories, channels and geographies by delivering consistent, seamless and exceptional brand experiences, wherever and however our consumers shop for beauty,” he added.
Ellyn Porpora to leave
Although the company has not publically announced its plans for Travel Retail, TMI understands that Ellyn Porpora will be leaving the company on February 15. Porpora was sales director for Revlon for the Americas Travel Retail, working with the brand since it launched in the channel nearly 20 years ago.